Lesson 3.7.3

3.7.3 Analysing internal position: overall performance Quiz: AQA Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.7.3, Analysing internal position: overall performance: 20 multiple choice questions for the AQA Business (7132), Unit 7: Analysing the strategic position of a business, written with Revision Ninja.

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The 20 questions

  1. What are the three elements of Elkington's triple bottom line?

    • Strategy, structure and systems, which measure how well a business is organised and managed overall
    • Price, promotion and place, which measure how a business sells its goods and services to customers
    • Sales, wages and output, which measure the cost and volume of a business's day-to-day operations
    • Profit, people and planet, which measure financial, social and environmental performance together

  2. Which of the following is an example of non-financial data used to assess a business's overall performance?

    • The income statement figure for the cost of sales in the last period
    • Customer satisfaction scores collected from a regular survey of buyers
    • The amount of interest paid to banks in the most recent financial year
    • The balance sheet total for assets held by the business at the year end

  3. What is meant by a core competence?

    • A unique capability that gives a business a competitive advantage and is hard for rivals to copy
    • A qualification that an employee gains by completing a formal training course organised by the firm
    • A legal requirement that a business must meet before it can trade lawfully in its market sector
    • A financial target that a business sets for the next financial year to measure profit growth

  4. Which measure would best assess short-term performance rather than long-term performance?

    • Market share growth measured over a period of several years in the market
    • Investment in research and development that will pay back over a decade
    • Monthly operating profit compared with the budget set for the same month
    • Brand value built up gradually through consistent customer service over many years

  5. Which of these is a long-term measure of business performance?

    • The number of invoices issued this week
    • Growth in market share over five years
    • Cash balance at the end of the current month
    • Overtime hours worked in the last fortnight

  6. A firm has 400 staff on average and 40 leavers in a year. What is the staff turnover rate?

    • 4%
    • 10%
    • 0.1%
    • 40%

  7. A firm had 1,200 customers at the start of the year and retained 900 of them. What is the customer retention rate?

    • 900%
    • 133%
    • 25%
    • 75%

  8. Sales rise by 10% while the total market grows by 20%. What happens to the firm's market share?

    • It rises by 20%, because a growing market always raises the share of every firm in it
    • It rises by 10%, because the firm's sales growth is the same as its market share growth
    • It falls by about 8.3%, because 1.10 divided by 1.20 is about 0.917
    • It stays the same, because share is measured in pounds rather than in units sold

  9. Which of the following best explains the 'planet' element of the triple bottom line?

    • The number of employees who receive training in computer skills every year
    • The share of profit paid to shareholders as dividends at the annual general meeting
    • The environmental impact of a business, such as emissions, waste and resource use
    • The average salary paid to managers within the firm across all departments

  10. A business has strong core competences in brand and product design. Which evaluation is most accurate?

    • These strengths are valuable only if they are maintained and kept hard for rivals to copy over time
    • These strengths guarantee market leadership in every product category the business chooses to enter
    • These strengths make financial analysis unnecessary because customers will always pay higher prices
    • These strengths can be bought and sold easily by any firm that wants to compete in the market

  11. Why is it useful to benchmark a firm's performance against competitors?

    • It removes the need to analyse the firm's own trends over time, because rivals' data is more reliable
    • It replaces the need for a strategy because the firm can simply copy the methods of its competitors
    • It guarantees that a firm will outperform its rivals in the coming year because competitors' results are known
    • It shows whether results are good or poor in relative terms, which a single figure cannot show on its own

  12. A firm's operating profit is stable, but its customer complaints have doubled and repeat purchases have fallen. What is the best evaluation?

    • The business is clearly performing well, so the complaints and repeat purchase figures can be safely ignored
    • Repeat purchases are irrelevant to a business that earns a stable operating profit in the current year
    • Customer complaints have no effect on profits, so managers should focus only on the financial statements
    • Financial results alone may hide weakening customer performance, which could damage future profits if it continues

  13. A firm has 250 staff, absenteeism of 4% and an average of 220 working days a year. How many staff-days are lost?

    • 2,200 days
    • 8,800 days
    • 220 days
    • 55 days

  14. Why can the same profit figure lead to different conclusions about a business?

    • Profit is only relevant to shareholders, so it has no effect on how other stakeholders judge the business
    • Profit figures are always identical in meaning, so there is no need for any further comparison
    • Its meaning depends on trends over time and on how it compares with competitors and the market
    • Profit is calculated differently by every business in the same market, so it cannot be compared at all

  15. Evaluate the claim that a triple bottom line approach always improves a business's performance.

    • It always raises profit immediately because customers reward every social and environmental measure with higher spending
    • It has no value to businesses because only profit can be measured reliably in a set of accounts
    • It removes the need for financial planning because social and environmental goals replace profit targets entirely
    • It can improve reputation and resilience, but social and environmental spending may cut short-term profit, so trade-offs exist

  16. A business is comparing its performance using only its financial statements. What is the main limitation of this approach?

    • Financial statements are always inaccurate, so no conclusion from them can ever be trusted by managers
    • Financial statements are only produced for shareholders, so they do not show anything about the business
    • It is impossible to calculate profit from the income statement, so the approach cannot be used at all
    • It ignores customer, staff and environmental data that can show performance drivers and future risks

  17. Which type of data is most relevant to assessing operational efficiency?

    • Measures such as production capacity utilisation and defect rates in the production process
    • The brand awareness scores from a survey of customers in a different market sector entirely
    • The number of shares that the business has issued to outside investors in the most recent year
    • The total salary paid to the chief executive and board members at the annual general meeting

  18. Which of these is a people measure within the triple bottom line?

    • Carbon emissions from the firm's delivery vehicles over the same period of the year
    • The gearing ratio calculated from the balance sheet at the end of the year
    • Staff engagement scores and the amount invested in training over the financial year
    • Dividend paid to shareholders each year, expressed as a share of profit after tax

  19. Why might a business track both short-term and long-term performance measures?

    • Short-term measures show current health, while long-term measures show whether growth and competitiveness can be sustained
    • Short-term measures are always more accurate than long-term measures, so long-term ones can safely be dropped
    • Short-term measures cannot be calculated from financial statements, so they should be replaced by other figures
    • Long-term measures are only required by law, so they are of no practical use to managers making decisions

  20. A firm has a ROCE of 20% but its market share is falling each year. What is the best evaluation?

    • The firm is clearly successful because a 20% ROCE means that market share can safely be ignored by managers
    • The falling share must be caused by a fall in the value of the firm's assets on the balance sheet at year end
    • Current profitability is strong, but declining competitiveness may erode future returns, so both measures should be considered together
    • Market share is irrelevant to performance because only financial ratios can show how a business is doing overall

All AQA Business quizzes